UBS says self-driving cars could become a $100 billion market in China — and names stocks to play it

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Autonomous driving will be a 'more significant' megatrend than electric vehicles, UBS says, and names several stocks to play it.

The world is embracing the electric vehicle revolution, but UBS says autonomous driving is set to outshine even EVs in the auto space. "We expect autonomous driving to be the next technological revolution in the auto space, arguably a more significant megatrend than electrification with a more profound impact on the industry," UBS analysts, led by Paul Gong, wrote on Nov. 17.

The bank said Tesla's key assets include its "strongest" autonomous vehicle and machine learning know-how, as well as its fully connected fleet — the largest among its peers. The bank also likes Mercedes for its strong luxury focus and "relatively strong" autonomous vehicle technology. Mercedes has a partnership with semiconductor giant Nvidia to develop the next generation of the German automaker's in-vehicle computing systems.

 

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